An important historical reason for the FASB reversing its positions when political pressures occur is:
A) The cost of gathering data was prohibitive.
B) The difficulties in measurement were too great.
C) Companies withdraw financial support for the FASB.
D) The SEC did not support the FASB position.

Question

Quizplus · Accepted Answer

The SEC (Securities and Exchange Commission) is a powerful regulatory body, and its lack of support can significantly influence the FASB's decisions, leading to reversals under political pressure.

An Important Historical Reason for the FASB Reversing Its Positions